Dutch Gambling Authority fines illegal online gambling websites €26 million

The Dutch Gaming Authority (Ksa) has issued over 26 million euros in fines to five companies illegally providing online gambling in the Netherlands. The largest fine of almost 13 million euros was imposed on N1 Interactive. Videoslots, another company in the online gambling space, was fined just under 10 million euros. These are the highest Dutch fines ever for this offence.

According to the Ksa, these companies, all established in Malta, did not have the license required to offer gambling on the internet in the Netherlands. In late December, the five operators were informed of the fines but then tried to keep the sanctions from being made public by pursuing legal action. However, the court denied their requests this week, which is why the regulator is now releasing the information. The parties' attempts to object to the fine are still pending.

The high fines imposed can be attributed to the turnover the parties generated on the Dutch market, as illegal online gambling activities bring in significant revenue with games like roulette, blackjack, poker, baccarat and slots. Ksa chair René Jansen said that the watchdog wanted to show the companies this is a very serious problem. "Player safety comes first. A fine hits them where it hurts, in the wallet,” he stated.

Another factor in the case of N1 Interactive was its previous record of misconduct, which had led to fines imposed by the Ksa. Videoslots had previously been accused of misleading people by falsely displaying the Ksa’s word mark on its website.

The Ksa explained that only providers with the appropriate license are allowed to display their word mark. “This logo is an important indicator for players to determine whether they are dealing with legal gambling services.” The other sanctioned operators are Betpoint, Probe Investments, and Fairload.

Online gambling has only recently been legally regulated in the Netherlands. It has only been possible to offer legal online gambling in the Netherlands since October 1, 2021. The Ksa issued permits for this to ten providers at first, and that number has grown to 24. If a company does not have a license and allows Dutch people to gamble via its website from elsewhere in the world, this immediately constitutes a violation. They must ensure that it is impossible to play from Dutch IP addresses.

The fined parties have since ceased their activities on the Dutch market, the Ksa said. All five are still unlicensed. That will also remain the case for at least the time being, because in order to qualify for a license, they must not have offered online gambling in the Netherlands for at least two years.